1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The launch of the first and second batches of science - innovation bond ETFs in 2025 marks the entry of the science - innovation bond market into a new stage, which has evolved from the exploration of "dual - innovation bonds" to the mature stage with the construction of the "technology board" in the bond market [7][17][93]. - Science - innovation bonds have significant differences from "dual - innovation bonds" in terms of issuer scope, issuance venues, and fund usage. As of September 30, 2025, the outstanding amount of science - innovation bonds is 2.8286 trillion yuan, dominated by science - innovation corporate bonds, with industrial entities having a high proportion in all three types of bonds [8][25][93]. - In the primary market, the issuance scale of science - innovation bonds has increased from 500 million yuan in 2020 to over 125 billion yuan as of September 30, 2025. The issuance period has first shortened and then lengthened, and the interest rate has generally declined with fluctuations. The issuance of urban investment bonds is concentrated in provinces such as Jiangsu and Shandong, and industrial entities are dominated by central and local state - owned enterprises [9][93]. - In the secondary market, science - innovation bonds have higher liquidity scores than non - science - innovation bonds. High - rated, medium - short - term, and publicly - issued varieties have better liquidity. The excess spread is generally lower than that of non - science - innovation bonds of the same issuer, the trading deviation is smaller, and the proportion of TKN trading volume is higher than that of credit bonds [10][72][93]. 3. Summary According to Relevant Catalogs 3.1 Development Context - The development of science - innovation bonds has gone through three stages: the institutional exploration period of "dual - innovation bonds" from 2015 - 2017, the rapid growth period of forming a "stock exchange + inter - bank market" dual - market pattern in 2022, and the mature stage with the launch of the "technology board" in the bond market and policy upgrades in 2025 [7][17][93]. 3.2 Fundamental Core - **Differences from "dual - innovation bonds"**: "Dual - innovation bonds" are limited to innovation and entrepreneurship and venture capital companies, issued only on the exchange with a 3 - 5 - year term, and used for early - stage equity investment. Science - innovation bonds cover a wider range of issuers, including science - innovation enterprises and financial institutions, are issued in both markets with flexible terms, and have clear requirements for the proportion of funds invested in the science - innovation field [8][25]. - **Issuance Specifications**: Exchange - listed science - innovation enterprise - type bonds need to meet R & D investment or patent requirements, and inter - bank market entity - type bonds need to have a science - innovation title. There are also rich credit enhancement methods, such as the central - local cooperation credit enhancement model and credit risk mitigation vouchers (CRMW) [8]. 3.3 Primary Market - **Issuance Scale**: From 2020 to 2025, the issuance scale of science - innovation bonds has increased from 500 million yuan to over 1.25 trillion yuan as of September 30, 2025, showing a leap - forward growth [9][49]. - **Subject Structure**: The issuance of urban investment entities is concentrated in regions such as Jiangsu, Shandong, Anhui, Sichuan, and Chongqing. Industrial entities are mainly state - owned enterprises, with local state - owned enterprises issuing over 54 billion yuan and central state - owned enterprises over 44 billion yuan as of September 30, 2025, while the scale of private enterprises is significantly lower [9][55]. - **Term and Interest Rate**: The term has generally changed from short to long, rising from 2.46 years in 2023 to 3.45 years as of September 30, 2025. The interest rate has fluctuated downward, dropping to 2.14% as of September 30, 2025, indicating an increase in market recognition [9]. 3.4 Secondary Market - **Liquidity Advantage**: As of September 30, 2025, the liquidity scores of science - innovation bonds are higher than those of non - science - innovation bonds. Among them, high - implied - rated, publicly - issued, and medium - short - term remaining - maturity science - innovation bonds have better liquidity [10][72]. - **Trading Characteristics**: The yield of science - innovation bonds is generally lower, and the proportion of TKN trading volume is higher than that of credit bonds. Under the influence of the issuance of the first batch of science - innovation bond ETFs in July 2025, the proportion of TKN in science - innovation bonds reached 77.64% in June, confirming market activity and recognition [10][88].

Core Points - The notice from the Trading Association aims to enhance the efficiency of the registration process for Credit Risk Mitigation (CRM) traders in the interbank market by introducing a new CRM trader module in the NAFMII investor registration service system [1][2] - Market participants are responsible for the authenticity, accuracy, and completeness of the registration materials, which must be submitted online [2] - CRM traders must verify their existing registration information by November 30, 2025, and update any changes through the system [2][3] - The Trading Association will conduct a formal verification of the registration information and publish the list of CRM traders on the system's homepage [3] - A one-month transition period will allow market members to continue using offline registration methods before the online system becomes mandatory [3][4]

Core Viewpoint - The China Interbank Market Dealers Association has revised the "Credit Risk Mitigation Warrant (CRMW) Creation Instruction Manual (2025 Edition)" to promote the standardized development of CRMW business and enhance creation efficiency for market participants [1] Group 1: Revision Details - The revised manual builds on previous guidelines and aims to align with the latest business system requirements [1] - It expands the creation elements of CRMW linked to entities and includes arrangements for inquiry creation and early cancellation [1] - The update optimizes information disclosure and provides additional document templates for market participants [1] Group 2: Future Directions - The association plans to continuously improve the operational mechanism of CRMW business and enhance service levels [1] - The goal is to better serve the needs of the real economy through credit derivatives and promote high-quality market development [1]

Core Viewpoint - The expansion of credit risk mitigation tools (CRMW) to include local institutions is expected to enhance the issuance and investment of technology innovation bonds (科创债) in China, providing a more stable financing environment for private equity and technology enterprises [2][10][12]. Group 1: CRMW Expansion - Three local institutions have recently been approved as CRMW creation entities, marking a significant expansion beyond large commercial banks and securities firms [2][10]. - The total number of approved CRMW creation institutions has reached 58, indicating a broader participation in the market [10]. - The inclusion of local credit enhancement institutions is anticipated to improve regional bond issuance and support for private enterprises [10][15]. Group 2: Impact on Technology Innovation Bonds - Since the launch of the technology board in May, the issuance of technology innovation bonds has accelerated, with CRMW playing a crucial role in stabilizing the market [2][12]. - The average issuance rate for new technology innovation bonds in September was 2.19%, reflecting a slight increase from 1.93% in May, but still demonstrating stability due to CRMW's credit protection [13]. - CRMW has significantly contributed to lowering financing costs for technology enterprises, with many bonds issued at rates lower than traditional bonds [12][13]. Group 3: Market Dynamics and Investor Sentiment - The current market environment, characterized by declining interest rates and ample liquidity, has led investors to seek higher-yielding risk products, making the combination of private enterprise bonds and CRMW particularly attractive [6][12]. - CRMW has been instrumental in supporting the issuance of bonds for private technology enterprises, with 84% of the total CRMW issuance linked to private enterprises [14]. - The revised guidelines for CRMW are expected to enhance market activity and encourage more financial institutions to participate in the creation of these risk mitigation tools [9][15].

Core Viewpoint - The establishment of the "Technology Board" in the bond market has achieved significant milestones within its first hundred days, with a total issuance of 739 technology innovation bonds amounting to 926.13 billion yuan, reflecting a collaborative innovation effort among financial regulatory bodies, infrastructure, and market participants [1][2]. Group 1: Market Performance - The interbank market has dominated the issuance of technology innovation bonds, accounting for 62.14% of the total issuance, with 5,755.77 billion yuan issued [2]. - Commercial banks have been particularly active, with 32 commercial banks and 2 policy banks issuing a total of 2,413 billion yuan in technology innovation bonds [2]. - The Shanghai and Shenzhen stock exchanges have also contributed, with a total issuance of 3,467.01 billion yuan in technology innovation corporate bonds, primarily directed towards sectors like chip design, biomedicine, and artificial intelligence [2]. Group 2: Bond Issuance Characteristics - The issuance structure of technology innovation bonds has shown a significant lengthening of maturity, with over 75% of bonds having a maturity of more than 3 years, and over 30% exceeding 5 years [4][5]. - This maturity design addresses the long-cycle characteristics of technology research and development, providing stable funding for hard technology projects [5]. Group 3: Financial Innovation Tools - Over 300 of the issued bonds have special clauses, and nearly 60 have introduced innovative credit enhancement measures, such as credit risk mitigation certificates (CRMW) [6]. - These tools have been instrumental in reducing investor concerns by sharing 30%-50% of default risks, especially for technology companies with insufficient credit ratings [6]. - The use of blockchain technology has also been highlighted, with the issuance of the first blockchain-based technology board bond, ensuring traceability of funds [6][7]. Group 4: Evolving Investor Landscape - The investor structure for technology board bonds is changing, with insurance fund allocations increasing from 22% at the beginning of the year to 35% [8]. - The rapid growth of technology board bond ETFs indicates a strong interest from long-term funds, with the first ETF surpassing 100 billion yuan in just five trading days [8]. Group 5: Future Directions - The People's Bank of China has emphasized the need for optimizing the technology board mechanism and innovating risk-sharing tools [8][9]. - There are ongoing discussions about establishing a dual-track system for technology and credit ratings to better assess the value of technology companies [9]. - The development of innovative financing tools is expected to enhance the financing ecosystem for technology enterprises, addressing the historical imbalance between equity and debt financing [9].

Core Viewpoint - The first projects utilizing the technology innovation bond risk-sharing tool have officially launched, aimed at supporting private equity investment institutions in issuing long-term bonds for technology innovation financing [1][2]. Group 1: Implementation of Risk-Sharing Tools - The China Interbank Market Dealers Association has organized the first projects using the risk-sharing tool under the guidance of the People's Bank of China, with a total issuance scale of 1.35 billion yuan [1]. - Five private equity investment institutions, including Yida Capital and Junlian Capital, have received credit enhancement and investment support through the risk-sharing tool [1][2]. - The newly created technology innovation bond risk-sharing tool is designed primarily for private equity investment institutions, while the previous "second arrow" policy tool was aimed at private technology enterprises [1][2]. Group 2: Bond Issuance Details - The bonds issued by the five private equity investment institutions have maturities of either 5 or 10 years, with coupon rates ranging from 1.85% to 2.69% [3]. - The risk-sharing tool collaborates with financial institutions to create credit risk mitigation certificates, enhancing the bonds' creditworthiness [3]. - Local guarantee companies from Beijing, Shaanxi, and Shenzhen are involved in providing counter-guarantees, reinforcing the "central-local cooperation" model for risk control [3]. Group 3: Broader Implications for the Industry - The introduction of diversified credit enhancement tools is seen as a means to effectively control risks, while private equity investment institutions must strengthen internal controls to ensure proper use of raised funds [4]. - The launch of the "technology board" opens new avenues for low-cost, long-term financing for private equity investment institutions [4]. - The overall effectiveness of the bond market in supporting technology innovation is expected to improve, enhancing the financing accessibility for weaker credit-rated enterprises and private equity investment institutions [4][5].

Core Viewpoint - The development of credit risk mitigation tools (CRM) in China's financial market infrastructure is enhancing the innovation and effectiveness of credit derivatives, particularly benefiting the financing needs of technology enterprises [1][2][7]. Group 1: Credit Risk Mitigation Tools and Technology Board - The integration of CRM tools with the "Technology Board" is helping to increase debt financing scale and reduce costs, addressing the financing difficulties faced by private enterprises [2][10]. - Since the launch of the "Technology Board," credit risk mitigation certificates (CRMW) have supported the issuance of technology innovation bonds, with a total of 6 registrations amounting to 395 million yuan, facilitating the issuance of 1.25 billion yuan in technology innovation bonds [1][7]. Group 2: Market Infrastructure and Business Models - The CRMW creation and bond issuance model has created approximately 150 billion yuan in support for over 340 billion yuan in bond issuances since its introduction in 2018 [3][6]. - Major banks such as Zheshang Bank, Ping An Bank, and Bank of Communications have been leading in CRMW creation, with amounts of 1.215 billion yuan, 1.056 billion yuan, and 410 million yuan respectively in the first half of 2025 [4][3]. Group 3: Regulatory and Operational Enhancements - Recent revisions to the CRM business guidelines have streamlined processes and improved operational efficiency, allowing for a more comprehensive regulatory framework for CRM activities [6][7]. - The Shanghai Clearing House has enhanced its services for CRM, enabling online processing for credit events and early termination of CRMW, significantly improving operational convenience [6][7]. Group 4: Broader Economic Impact - CRM tools are increasingly recognized as effective financing aids, helping to mitigate credit risks in the bond market and ensuring smooth financing for the real economy [10][11]. - Local financial institutions are expected to play a crucial role in the creation of CRMW, leveraging their regional knowledge to provide credit risk protection for local enterprises [10][11].

Group 1: Key Meetings and Collaborations - Shanghai Mayor Gong Zheng met with Prudential Group CEO Huakang Yao, emphasizing the importance of financial openness and collaboration in asset management and green finance [2] - The Shanghai Financial Industry Association held a successful re-election meeting, with a focus on enhancing the role of the association in supporting economic development and financial innovation [3] Group 2: Policy and Regulatory Developments - The Shanghai Municipal Financial Office convened a meeting to convey the spirit of the 12th Municipal Committee's seventh plenary session, outlining future work deployment [4] - A notice was issued regarding the 2025 Shanghai Oriental Talent Plan, inviting applications for outstanding youth projects in the financial sector [5] Group 3: Financial Support Initiatives - Shanghai encourages financial institutions to provide seamless and non-repayment loans to small and medium-sized enterprises in the software and information services sector [6][7] - The Shanghai Futures Exchange released an international version of its business rules to facilitate high-level openness in the futures market [10] Group 4: Market Developments - The first batch of Sci-Tech Innovation Bond ETFs was established, with net subscription amounts exceeding 2.9 billion yuan [8] - The Shanghai Stock Exchange and Shenzhen Stock Exchange announced the upcoming launch of several specialized indices focusing on niche markets [9] Group 5: Financial Technology and Innovation - The Shanghai Financial Technology Innovation Regulatory Tool Workgroup announced the testing phase for six new innovative applications aimed at enhancing digital finance [11] - Shanghai Rural Commercial Bank issued a $30 million non-resident acquisition loan to support a domestic pharmaceutical company's cross-border acquisition [12] Group 6: Long-term Investment Regulations - The Ministry of Finance introduced new regulations for insurance companies to enhance long-term investment stability and sustainability [14] - The National Financial Supervision Administration released guidelines for the appropriate management of financial products to protect consumer rights [15]